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Managers of public water companies present themselves and are seen as public servants maximizing public welfare. Because water is rarely allocated through market mechanisms, this maximization requires that managers cooperate in a bureaucratic version of a social dilemma. Members of the...
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instance, when farmers adopt groundwater extraction technology, they need to learn their private marginal cost and marginal … owners with less experience (owners of new wells) with groundwater technology, extract more water than the experienced owners …. Employing panel data at the district level in a fixed-effects model, we find that groundwater extraction rises as the growth …
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